SAVVY investors would be wise to follow in the footsteps of Queensland’s treasurer and buy property near mega-projects such as Cross River Rail and Brisbane Metro, new research shows.

Research from Place Advisory reveals house prices in suburbs like Albion, Woolloongabba and East Brisbane are set to spike as a result of improved public transport and longer term regentrification as a result of the city’s multibillion-dollar infrastructure pipeline.

A concept drawing of the new underground Woolloongabba station set to be constructed as part of the Cross River Rail project.

Place Advisory residential research director Lachlan Walker said it was hard to put an exact number on the potential impact, but house prices within a 1km radius of new public transport nodes could increase by seven per cent to eight per cent — potentially 50 per cent more than the average price growth expected for Brisbane as a whole over the next few years.

Some real estate agents say price growth could be as much as 20 per cent for houses in the suburbs directly impacted.

Suburbs like Albion are set to benefit from upcoming infrastructure projects.

But Mr Walker said the benefits were not likely to start to be seen until six to 12 months after the projects’ completion.

Jackie Trad, who is the minister in charge of the Cross River Rail, is in hot water over failing to publicly declare the purchase of a Woolloongabba house that stands to rise in value thanks to its proximity to the $5.4 billion project.

Ms Trade has vowed to sell the property for the same price that she and her husband paid for it.

Deputy Premier Jackie Trad during Question Time in Parliament House in Brisbane. Image: AAP/Jono Searle.

But Ms Trad may no longer be able to take advantage of her investment, property investors are being urged to start researching the areas around the study path for projects like Cross River Rail and the $944 million Brisbane Metro.

“For the investor, there’s no better time than now to start looking,” Mr Walker said.

“These suburbs stand to have significant future benefit.

“I’d be looking at the best value properties in those areas.”

Mr Walker said those projects would also encourage redevelopment and regentrification in the suburbs they impacted.

Place Advisory residential research director Lachlan Walker.

Property Pursuit director and buyers agent Meighan Hetherington said she had been looking closely at a number of properties for clients in the areas due to be impacted by the Cross River Rail project.

But Ms Hetherington said improvements to access to good public transport was not the “be all and end all” when it came to price growth for surrounding properties.

“I would caution people to be very wary of being too close to the study path (of the Cross River Rail),” Ms Hetherington said.

This house at 17 Camden St, Albion, is for sale. Albion house prices are set to benefit from the Cross River Rail project.

She said investors should look at properties between 500m and 1km of the new stations proposed for the Cross River Rail, with freehold houses preferable to apartments.

“I would differentiate between two bedroom apartments largely built for investors and three bedroom, larger apartments, which are sought-after by downsizers,” she said.

“There is good demand from downsizers for larger apartments that are well located.”

This four-bedroom house at 8 Blackall Tce, East Brisbane, is for sale for offers over $995,000 and stands to benefit from the Cross River Rail project.

Ms Hetherington pointed to the Transapex project, which saw the convergence of the airport tunnel and northern bus way around the Kedron area in Brisbane’s inner north, as an example of how Cross River Rail’s impact on local real estate might play out.

“Our analysis was that the improvement in access would prove a real benefit to local property and indeed you can see this in 2012 and 2013, with house prices performing above the Brisbane metro average,” she said.

A concept drawing of the new underground Roma Street station set to be constructed as part of the Cross River Rail project.

But Ms Hetherington said she only expected property prices impacted by the Cross River Rail to outperform the rest of the market by two per cent to three per cent.

Summer Mitchell of Place Estate Agents – Woolloongabba said she had buyers specifically looking for properties in the suburbs of East Brisbane and Woolloongabba with a view to capitalising on the incoming infrastructure.

“I think savvy investors and homeowners are realising property in these areas will, in time, increase in price due to the fact they will have world-class infrastructure surrounding them,” Ms Mitchell said.

“The main driver for this area is Cross River Rail.

“That will offer residents a ‘turn up and go’ service with a three minute commute to the city.”

Ms Mitchell said she expected around 20 per cent price growth over the next three to five years in suburbs impacted by the new infrastructure.

“I believe certain suburbs will see more than that and I think East Brisbane will be one of them,” she said.

This two-bedroom apartment at 4/68 Longlands St, East Brisbane, is available for offers over $379,000.

Brisbane resident Dee Brough is looking to buy another investment property to capitalise on the city’s impending infrastructure boom and increasing population.

Mrs Brough and her husband already own an apartment in Brisbane’s CBD, but would like to invest in a townhouse or freehold terrace house in a city fringe suburb like Woolloongabba, Highgate Hill or Dutton Park.

“I think property in Brisbane is on the move and I personally think this is the time to buy in,” Mrs Brough said.

“We have done a bit of research in regards to what’s happening with infrastructure changes and population growth, and there’s going to be more demand I think for properties in the CBD and outer edge of the CBD to be able to house people.”

This four-bedroom house at 12 Leamington St, Woolloongabba, is for sale and set to benefit from the Cross River Rail project.

Your Property Your Wealth director and buyers agent Daniel Walsh said Brisbane’s major infrastructure program would boost the local economy and make the city more attractive to property investors.

“The Sunshine State is also welcoming thousands of new interstate migrants every month and many of these new ‘locals’ have sold in the most expensive southern markets so have money to spend,” Mr Walsh said.

“I believe that between now and when interest rates hit zero that Brisbane will be the strongest market in the land.

“Part of this reason for my thinking is that the Brisbane market was poised to take off just before the APRA lending crackdown ground it to an unnecessary halt.

“Now that that handbrake has been released, it’s kicking into gear once more.”

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